Fuel Nazi No More! GM Lets Dealers Have Their Fuel Allowance Back


Last week we reported on a double-super-secret missive from William Powell, GM's Veep for Industry Dealer Affairs to all dealers on fuel allowances outlining the General's new policy on reimbursement to dealers of the cost of gas on that first filled-to-the-brim tank on a new car. The new policy was that instead of a reimbursement to dealers for a full tank upon delivery, the General'd be reimbursing $20 for a car and $30 for a truck — which by our calculations left a sizable gap between what it takes to fill a tank and what the General's willing to pay. After seeing the code-word clearance only document, we hypothesized that the added cost of the first tank was going to slip on down to the consumer. Apparently the General was reading and got concerned about the same thing, because in a startling twist, they've decided to let the dealers have their soup and the full fuel allowance. Kudos to the General for making the right decision, now lets see if they'll give us bread too. The full amended policy memo sent to dealers on Friday is just a click of the jump away.

GM 06-20
Date: August 25, 2006

To: All General Motors Dealers

From: William E. Powell
GM Vice President
Industry Dealer Affairs

Subject: Amendment 2006 Fuel Allowance Guidelines
Effective September 1, 2006


This bulletin replaces and supersedes GM Bulletin GM 06-19 dated August 18, 2006.

Recently we notified you of a change in policy to our fuel fill reimbursement based upon the changing business conditions and competitive environment. In so doing, it was not our intent that this would possibly be a cost transfer to our dealers or an impediment to customer satisfaction. It was rather a move to adjust to the marketplace.

Based upon the recommendation of the GM National Dealer Council and input from the Divisional and Regional Councils that a complete fuel fill was viewed as an integral element in the delivery of GM vehicles, we have decided to reinstate our fuel fill reimbursement program. We value and appreciate the input and support of our dealer body and our dealer council process.

This notice, therefore, will rescind the GM Bulletin GM 06-19 with respect to fuel allowance guidelines and will leave the policy as before, as communicated in GM Bulletin GM 06-17 dated July 19, 2006, and Saab Bulletin dated October 1, 2005. Further details regarding the 2007 Fuel Allowance Guidelines will be sent to you in a subsequent notice.

We continue to work diligently toward the turn around of GM and rely upon the finest dealers in the industry for advice, counsel and business results.

Related:
GM Says To Dealers: No Gas For You! [internal]